Semiannual Report
GLOBAL
STOCK
FUND
--------------
APRIL 30, 2000
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[GRAPHIC OMITTED]
T. ROWE PRICE
<PAGE>
REPORT HIGHLIGHTS
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Global Stock Fund
o Global stocks were strong during the past six months, with technology
stocks leading the way.
o The fund's returns for the 6- and 12-month periods were well ahead of the
MSCI World Index but somewhat behind the Lipper average.
o Good performance was largely attributable to our focus on buoyant markets
and on stock selection in strong sectors.
o The portfolio contained a good balance of New Economy companies and those
in traditional growth industries.
o We expect continuing volatility but believe the fund's broad
diversification will serve investors well over the long term.
UPDATES AVAILABLE
For updates on T. Rowe Price funds following the end of each calendar quarter,
please see our Web site at www.troweprice.com.
<PAGE>
FELLOW SHAREHOLDERS
Global stock markets provided solid gains during the six months ended April 30,
2000. Strength in various technology sectors drove telecommunications, media,
and technology stocks sharply higher prior to a dramatic reversal in mid-March.
While investors refocused their attention on value, cyclical, and more defensive
growth stocks late in the quarter, stocks connected to technology and the
so-called New Economy dominated the period.
Your fund provided robust returns for the 6- and 12-month periods shown in the
table. Performance was well ahead of the MSCI World Index but somewhat off the
pace of the Lipper Global Funds Average for both time frames. Our overweighting
of several buoyant markets such as Brazil, Mexico, and Sweden, and under-
weighting of weaker ones including the U.K., Japan, and Switzerland helped
results relative to the EAFE index. Substantial positions in the technology and
media sectors also lifted performance, as did successful stock selection in
several countries ( U.S., Japan, Hong Kong, Italy) and sectors (telecom,
banking). Your fund's combination of more reasonably valued telecommunications,
media, and technology stocks and less dynamic steady-growth holdings in other
sectors helped performance when leadership changed in March.
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PERFORMANCE COMPARISON
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Periods Ended 4/30/00 6 Months 12 Months
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Global Stock Fund 14.74% 20.94%
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MSCI World Index 7.64 12.64
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Lipper Global Funds Average 16.44 23.98
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The strength of New Economy stocks and sectors contrasted sharply with those of
other industries. Telecom and Internet-related companies and their suppliers
soared, while established enterprises such as food manufacturers and utilities
were left far behind. Performance was divided between big winners and some
significant losers. However, sector leadership changed as an abundant supply of
new issues reduced the value of Internet-related investments and investors
started to worry about valuations. Pharmaceuticals, consumer cyclicals, and
financials started to recover. Performance in technology-related sectors
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became increasingly selective and volatile with investors growing concerned
about stocks with great potential, perhaps, but no signs of earnings.
Improving international economies provided a supportive backdrop for stocks. The
U.S. and Europe enjoyed stronger-than-expected growth, with further
consolidation in the telecom and banking sectors. The euro's 13% decline against
the dollar over the past six months had several causes: investments flowing out
of the euro zone as European companies acquired U.S. companies, the persistent
gap between exceptionally strong U.S. growth compared with moderate growth in
Europe, and higher interest rates in the U.S. The declining euro sharply reduced
returns for U.S. investors in European markets.
In Japan, while stronger capital expenditure and steadily improving industrial
production signaled a reviving economy, unemployment remained high and the
consumer sector weak. The economic recovery continued throughout the rest of the
Pacific. The possible entry of China into the World Trade Organization
encouraged investment there. In Latin America, economies also improved. Mexico's
debt rating was raised to investment grade, further boosting regional prospects.
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T. ROWE PRICE BECOMES SOLE OWNER OF INTERNATIONAL INVESTMENT MANAGER
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As an international investor, you may be aware that the T. Rowe Price
international and global stock and bond funds have always been managed by Rowe
Price-Fleming International, Inc., a joint venture formed in 1979 between T.
Rowe Price Associates and London-based Robert Fleming Holdings, Limited.
On April 11, 2000, T. Rowe Price announced an agreement to purchase the 50% of
the joint venture owned by Flemings, thus becoming the sole owner of the
management company. In due course, the name of Rowe Price-Fleming International
will be changed to reflect its new status.
The change in ownership structure will not affect the investment approach or
operations of our international funds. We expect Rowe Price-Fleming's leadership
and professional staff to remain in place, together with the substantial
resources and expertise built up over the past 20 years. Likewise, there will be
no change in the offices in London, Hong Kong, Tokyo, Singapore, Buenos Aires,
Paris, and Baltimore.
Under the U.S. securities laws, the assignment of the funds' investment
management contract to a new entity is subject to shareholder approval.
Accordingly, after the purchase is concluded later this year, we will set a date
for a shareholder meeting and send you a proxy with voting information.
The formation of Rowe Price-Fleming 20 years ago opened the way for T. Rowe
Price to expand the investment services offered to shareholders and clients. As
an integral part of T. Rowe Price, this very successful international investment
manager will provide significant opportunities to enhance those services.
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2
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INVESTMENT REVIEW
At the end of April, the U.S. represented 42% of net assets, precisely the same
as six months ago. Europe was at 31%, down from 34% in October. Japan was the
second-largest country weighting at 11% of assets, little changed from six
months ago. Our exposure in the Far East rose from 4% to 6%. In Latin America,
we split most of the portfolio between Mexico and Brazil. Your fund was
underweighted in Europe and Japan relative to the benchmark. These shifts were
due to regional differences in performance and to some holdings in Asia. Our
purchases focused on selected New Economy stocks with strong potential and on
more traditional stocks, including banks and pharmaceuticals, which appeared
oversold based on their growth prospects.
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GEOGRAPHIC DIVERSIFICATION
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[The following table is depicted as a pie chart in the printed material].
Latin America 2%
Other and Reserves 8%
Far East 6%
Japan 11%
Europe 31%
United States 42%
Based on net assets as of 4/30/00.
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United States
Technology companies continued to lead both earnings growth and stock
appreciation in the U.S. during the last six months. Although this sector faded
sharply late in the period, it was still the primary driver of performance.
While highflying Internet stocks ran into stiff headwinds, other companies that
benefit from Internet investment continued to do extremely well.
Our holdings in Internet suppliers such as Oracle, Cisco Systems, VERITAS
Software, and Sun Microsystems were particularly rewarding. (Internet sites use
Oracle databases on Sun servers conveyed by Cisco routers stored with VERITAS
software.) In addition, our large positions in semiconductor companies also
helped performance, as the view that the cell phone will be a major portal to
the Internet increased demand for phones and the chip sets inside them. Texas
Instruments and Altera were especially strong. However, Microsoft suffered
because of its battle with the federal government over the company's business
practices.
3
<PAGE>
Financial stocks were generally weak. Even though most of our holdings in this
area continued to enjoy strong earnings growth, rising interest rates resulted
in declining stock prices and lower price/earnings multiples. We had previously
trimmed our exposure to this sector, but after valuations became compelling we
added to several stocks and initiated a position in State Street, a company
poised for continued growth.
We believe in the growth of the cellular market and added Western Wireless, a
company with solid growth and great strategic appeal to national companies. We
also beefed up our holdings in companies that sell optical components and
equipment in the telecom market, and initiated a position in JDS Uniphase.
On the sales side of the ledger, we sold Cox Communications and Yahoo! because
of their high valuations, and Synopsys due to pricing issues in its market that
appear to be more significant and are likely to last longer than we thought.
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MARKET PERFORMANCE
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Six Months Local Local Currency U.S.
Ended 04/30/00 Currency vs. U.S. Dollars Dollars
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France 32.23% -13.30% 14.64%
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Germany 33.25 -13.30 15.53
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Hong Kong 12.27 -0.25 11.99
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Italy 26.37 -13.30 9.56
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Japan 7.07 -3.44 3.39
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Mexico 18.45 2.19 21.04
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Netherlands 17.19 -13.30 1.60
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Norway 13.09 -12.32 -0.84
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Switzerland 4.18 -11.44 -7.73
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United Kingdom 1.57 -4.64 -3.14
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United States 7.46 -- 7.46
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Source: RIMES Online, using MSCI indices
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Europe
Country performance varied considerably, depending more on each country's
component of technology issues than on local factors. The Swedish and Finnish
markets were strongest, up 53% and 81% in U.S. dollar terms, respectively, due
mostly to the gains of technology leaders Ericsson and Nokia.
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Stocks in Germany rose 16% (more than 33% in local currency terms) as its large
technology and telecom stocks soared. The weak euro trimmed returns for U.S.
investors in Euroland. In France, technology and media accounted for much of the
market's 15% rise in dollar terms and 32% in local currency. The U.K. and
Switzerland, with fewer technology and telecom companies, were the weakest major
markets, falling 3% and 8%, respectively. Poorer performance from financial
services companies and pharmaceuticals held back their returns.
MEDIA COMPANIES SURGED BECAUSE OF THEIR POPULAR CONTENT...
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Mobile telecom revenues are expected to rise in Europe as Internet-compatible
mobile telephones are introduced and customer usage increases. The biggest news
in the sector was U.K.-based mobile telecom Vodafone Airtouch's acquisition of
Germany's second largest telecom, Mannesmann. The deal reinforced Vodafone's
preeminence as the leading global mobile business. The initial public offerings
(IPOs) of Terra Networks, controlled by Spanish telecom Telefonica, and
T-Online, controlled by Deutsche Telekom, were hugely oversubscribed and their
prices soared accordingly. U.K.-based Cable & Wireless, which carries about a
third of the world's Internet traffic, and United Pan-Europe Communications of
the Netherlands, with cable networks throughout Europe, both performed strongly
due to cable networks' potential for high-speed broadband transmission.
Media companies surged because of their popular content, which can be provided
to Internet users. Another stimulus was the prospect for further growth as
Internet access via digital/interactive TV develops. Winners included Italy's
Telecom Italia and Television Francaise. Telecom Italia announced that it would
combine its dominant Internet subsidiary with Seat, while the continued ascent
of Television Francaise reflected increasing advertising demand, market
leadership, and the potential for Internet-related growth.
Technology stocks rocketed as markets for mobile telecom handsets, network
infrastructure, and other communications equipment mushroomed. Nokia and
Ericsson both benefited as demand for their telecom equipment and
infrastructure escalated, and we increased our
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<PAGE>
holdings in Ericsson during the past six months. STMicroelectronics in France,
Germany's Siemens, and Philips Electronics and ASM Lithography in the
Netherlands all performed strongly due to the demand for telecom, broadcasting,
and Internet products.
As sector leadership changed in March, neglected energy producers, financials,
basic materials, and pharmaceuticals rebounded, although they still trailed far
behind technology stocks. Energy producers Royal Dutch Petroleum/Shell Transport
& Trading (Netherlands/UK) and Total Fina (France) made tangible progress with
restructuring. The latter became more optimistic about its prospects for cost
reductions and various synergies as the merger between the two previously
independent companies progressed further. After a dull period, the earnings
outlook for pharmaceutical giant Glaxo Wellcome improved and we added to the
stock. The company's agreement to merge with SmithKline Beecham enhanced its
prospects for growth. The banking sector consolidated as Royal Bank of Scotland
Group won a battle against Bank of Scotland to acquire National Westminster
Bank. Finnish/Swedish Nordic Baltic Holdings acquired its Danish neighbor
Unidanmark, and U.K.-based HSBC acquired French/Belgian bank CCF.
Unfortunately, the fund had its share of losers as well. We were disappointed by
investors' failure to reward companies with histories of solid, long-term
earnings growth while favoring many New Economy stocks with little or no
earnings. Food and beverage and some financial stocks were particularly hard
hit. Among them were Unilever of the U.K. and Belgian/Netherlands insurer
Fortis.
Far East and Other
In Japan, performance peaked early in 1999 and lagged during the past six
months. However, the sedate 3% rise in dollar terms masked volatile swings and a
wide disparity among sector performances. Our holdings in established,
fundamentally sound technology and consumer electronics companies performed well
in an environment of surging demand for their products. Sony rose sharply
following an announcement of its intention to provide Internet banking, launch
an Internet-compatible product, and split its shares. Restructuring, robust
demand, and plans for Internet alliances and services drove the shares of NEC
and Toshiba higher. Canon's successful range of digital products and its
strengthening position in the semiconductor production equipment market
accounted for its buoyancy. MurataManufacturing, best known for leadership in
mobile handset components, and Kyocera for handset production, also rose.
6
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Telecom and media were other leading sectors. The agreement among DDI, IDO, and
KDD to merge marked the first step in the consolidation of telecom companies,
and Kyocera's sharp gain partly reflected its status as the largest shareholder
in the proposed new entity. The strong performance of Japan's dominant mobile
telecom, NTT DoCoMo, reflected the success of its Internet-compatible services.
We added to this position during the period. Media company Fuji Television
Network climbed due to its popular programs, advertising growth, and potential
to provide viewers with Internet access.
Outside technology, your fund's low exposure to falling bank shares helped
performance. Brokerage firms, in contrast, registered strong gains due to record
launches of stock funds. Nomura Securities, which surged in this environment,
expects to benefit as savings accounts containing over $1 trillion mature during
the next two years. A significant percentage of this money is likely to be
invested into equity funds. Perceiving that bank stocks had been oversold during
the period, we added to Sumitomo Bank and established a new position in Fuji
Bank.
------------------------
INDUSTRY DIVERSIFICATION
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Percent of Net Assets
10/31/99 4/30/00
================================================================================
Services 31.8% 34.9%
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Capital Equipment 17.2 21.0
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Finance 17.7 14.6
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Consumer Goods 18.6 14.1
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Energy 5.4 5.3
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Materials 2.2 2.5
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Multi-industry 0.9 0.8
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Reserves 6.2 6.0
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Other Assets Less Liabilities -- 0.8
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Total 100.0% 100.0%
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Despite the highflying technology sectors, Japan's economy remained lackluster.
Fourth-quarter GDP was off 1.4% from the third quarter, and unemployment rose to
a post-war high of 4.9%. While industrial production strengthened, worries about
future job losses depressed consumer spending and retail sales as company
restructuring and bankruptcies increased. Underfunding of corporate pensions and
planned cuts to national pension benefits also hurt consumption.
Technology-related stocks also led markets in Asia outside of Japan. Singapore
and South Korea were weaker since lagging financial, natural
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resources, and industrial companies dominate those markets. In contrast, Hong
Kong, Taiwan, and India registered double-digit gains because of their exposure
to technology-related issues.
HUTCHISON'S ANNOUNCEMENTS OF SEVERAL INTERNET-RELATED DEALS DROVE ITS
PERFORMANCE.
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Hong Kong's leading performers were Internet company Pacific Century CyberWorks,
China Telecom (Hong Kong), and diversified Internet portal holding company
Hutchison Whampoa. Rapidly growing demand, impressive results, and the possible
admission of China to the World Trade Organization stimulated China Telecom, one
of the world's largest cellular phone operators, which provides mobile telecom
services in China. Hutchison's announcements of several Internet-related deals
drove its performance. Among our laggards in this region, Henderson Land
Development fell in price as property values failed to recover as expected.
In the region's emerging markets, South Korean technology giant Samsung
Electronics, with significant market positions in semiconductors, flat panel
screens, and mobile handsets, rose rapidly through the quarter and we added to
this position. In Taiwan, two of the world's leading electronic component
producers, Taiwan Semiconductor Manufacturing and Hon Hai Precision, performed
extremely well. Indian finance company ICICI was one of the region's best
performers, helped by the company's focus on returns, beneficial government
reforms, and the potential for increased market share versus the state-owned
banks.
Despite overall weakness in the Australian market, our media holdings there were
winners. Both News Corporation and Publishing & Broadcasting have valuable
content and Internet businesses. NewsCorp's interests extend globally and range
from film to digital television and program content production, and we added to
these holdings. On the losing side of the ledger, telecom Telstra suffered from
a rapid decline in its core business and the slow pace of the company's Internet
development.
Latin America
With only 2% of the portfolio invested in this region, our exposure here was
minimal. Further economic advances in Brazil and Mexico, coupled with the
buoyancy of regional technology stocks, pushed Brazil up 38% and Mexico 21% in
dollar terms. Brazilian investors
8
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contributed to gains there as they switched from bonds to stocks when interest
rates fell from over 30% early in 1999 to around 19%. However, Brazil's need to
fund its fiscal deficit and Mexico's close trade links with the U.S. make their
markets sensitive to changes in U.S. interest rates, economic growth, and stock
performance.
Your portfolio's largest positions in the region, Telebras in Brazil and
Telefonos de Mexico in Mexico, performed well. Both have significant growth
prospects because market penetration is low and improving economic conditions
encourage consumer spending. They also carry more attractive valuations than
their peers in developed markets. In this market, we added to media company
Grupo Televisa. Brazil's major energy stock, Petrobras, was another market
leader as the company's restructuring raised returns and earnings. Its growth
potential and the possibility of further deregulation also encouraged investors.
INVESTMENT POLICY AND OUTLOOK
Going forward, we expect U.S. interest rates to continue to rise into the
summer, which should begin to slow the economy from its torrid pace and result
in continued market volatility. In Europe, accelerating deregulation,
restructuring, and consolidation are key catalysts for earnings growth. The
convergence of information and communication technologies and their application
to traditional businesses are additional stimuli for further market gains. If
Japan's growth potential is to be fully realized, it will need to complement its
leading position in New Economy technology with a willingness to alter
traditional ways of doing business. In the rest of Asia, the slow but steady
pace of reform, coupled with economic recovery, could fuel growth of traditional
and Internet-related sectors. The region's enthusiastic embracing of the New
Economy should also stimulate markets.
Around the world, the extent to which companies can increase shareholder value
by integrating new technologies and the Internet with traditional businesses, or
by providing networks and software, will benefit their earnings outlooks.
Competition drives prices down, bringing rewards to consumers and shareholders
of companies that compete best.
Following a year of speculation in Internet and technology stocks, we welcome a
return to selectivity and a focus on financial fundamentals. After this period
of volatility and consolidation among technology
9
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companies is over, the firms that can compete and flourish in this changing
environment will emerge as winners over time. Amid this transition and rising
interest rates, we expect stock market volatility to continue during the next
few months. Your fund contains the stocks of diverse companies with solid
fundamentals and leading market positions across a wide range of industries and
international markets. We believe this approach will continue to serve our
shareholders well over the long term.
Respectfully submitted,
/s/ Martin G. Wade
Martin G. Wade
Chairman
/s/ John R. Ford
John R. Ford
President
May 19, 2000
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NEW PRESIDENT OF T. ROWE PRICE INTERNATIONAL FUNDS
After more than 20 years as president of T. Rowe Price International Funds,
Inc., Martin G. Wade has passed the baton to his colleague, John R. Ford. John
Ford has been associated with T. Rowe Price's international investment
management arm since 1984. He currently serves on the Investment Advisory
Committees of all the T. Rowe Price international equity funds.
Mr. Wade was instrumental in the launching of T. Rowe Price's first foreign
stock offering, the International Stock Fund, in 1980, and played a key role
thereafter in the company's increasing presence as an international asset
manager. He remains associated with the International Funds as chairman and is
also a member of the Board of Directors of T. Rowe Price Associates.
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10
<PAGE>
T. ROWE PRICE GLOBAL STOCK FUND
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PORTFOLIO HIGHLIGHTS
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TWENTY-FIVE LARGEST HOLDINGS
Percent of
Net Assets
4/30/00
================================================================================
Vodafone Airtouch, United Kingdom 1.7%
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Nokia, Finland 1.6
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Cisco Systems, United States 1.4
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GE, United States 1.1
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Microsoft, United States 1.0
================================================================================
Citigroup, United States 0.9
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Glaxo Wellcome, United Kingdom 0.9
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Tyco International, United States 0.9
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Television Francaise, France 0.9
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Total Fina, France 0.9
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Sony, Japan 0.9
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Freddie Mac, United States 0.8
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Corning, United States 0.8
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Oracle, United States 0.8
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Dell Computer, United States 0.8
================================================================================
Warner-Lambert, United States 0.8
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Intel, United States 0.8
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Murata Manufacturing, Japan 0.8
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Vivendi, France 0.7
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Shell Transport & Trading, United Kingdom 0.7
================================================================================
Nortel Networks, Canada 0.7
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Cable & Wireless, Hong Kong/United Kingdom 0.7
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NTT DoCoMo, Japan 0.7
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Nippon Telegraph & Telephone, Japan 0.7
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Philips Electronics, Netherlands 0.7
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Total 22.7%
Note: Table excludes reserves.
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11
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-------------------------------
T. ROWE PRICE GLOBAL STOCK FUND
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This chart shows the value of a hypothetical $10,000 investment in the fund over
the past 10 fiscal year periods or since inception (for funds lacking 10-year
records). The result is compared with benchmarks, which may include a
broad-based market index and a peer group average or index. Market indexes do
not include expenses, which are deducted from fund returns as well as mutual
fund averages and indexes.
GLOBAL STOCK FUND
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[The following table was depicted as a mountain graph in the printed material.]
As of 4/30/00
Global Stock Fund $21,355
MSCI World Index $20,069
Lipper Global Funds Average $20,917
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AVERAGE ANNUAL COMPOUND TOTAL RETURN
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This table shows how the fund would have performed each year if its actual (or
cumulative) returns for the periods shown had been earned at a constant rate.
Since Inception
Periods Ended 4/30/00 1 Year 3 Years Inception Date
================================================================================
Global Stock Fund 20.94% 20.23% 19.13% 12/29/95
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Investment return and principal value represent past performance and will vary.
Shares may be worth more or less at redemption than at original purchase.
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12
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T. ROWE PRICE GLOBAL STOCK FUND
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Unaudited
--------------------
FINANCIAL HIGHLIGHTS For a share outstanding throughout each period
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6 Months Year 12/29/95
Ended Ended Through
4/30/00 10/31/99 10/31/98 10/31/97 10/31/96
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of period $ 16.77 $ 14.03 $ 13.01 $ 11.35 $ 10.00
----------------------------------------------------------------------------------------
Investment activities
Net investment income (loss) --* 0.05* 0.09* 0.06* 0.05*
Net realized and
unrealized gain (loss) 2.43 3.24 1.52 1.84 1.30
----------------------------------------------------------------------------------------
Total from
investment activities 2.43 3.29 1.61 1.90 1.35
----------------------------------------------------------------------------------------
Distributions
Net investment income (0.06) (0.10) (0.06) (0.06) --
Net realized gain (0.49) (0.45) (0.53) (0.18) --
----------------------------------------------------------------------------------------
Total distributions (0.55) (0.55) (0.59) (0.24) --
----------------------------------------------------------------------------------------
NET ASSET VALUE
----------------------------------------------------------------------------------------
End of period $ 18.65 $ 16.77 $ 14.03 $ 13.01 $ 11.35
========================================================================================
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Total return# 14.74%* 24.17%* 12.89%* 16.98%* 13.50%*
---------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to
average net assets 1.20%*+ 1.20%* 1.20%* 1.30%* 1.30%*+
---------------------------------------------------------------------------------------------------------------------------
Ratio of net investment
income (loss) to average
net assets 0.03%*+ 0.40%* 0.76%* 0.68%* 0.88%*+
------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 63.1%+ 37.5% 47.1% 41.8% 50.0%+
------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $ 102,594 $ 73,837 $ 44,116 $ 32,020 $ 14,916
------------------------------------------------------------------------------------------------------------------------
</TABLE>
# Total return reflects the rate that an investor would have earned on an
investment in the fund during each period, assuming reinvestment of all
distributions.
* Excludes expenses in excess of a 1.30% voluntary expense limitation in
effect through 10/31/97 and a 1.20% voluntary expense limitation in effect
through 10/31/01.
+ Annualized
The accompanying notes are an integral part of these financial statements.
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T. ROWE PRICE GLOBAL STOCK FUND
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Unaudited April 30, 2000
-----------------------
STATEMENT OF NET ASSETS Shares Value
--------------------------------------------------------------------------------
In thousands
-----------------------------
ARGENTINA 0.0%
-----------------------------
Common Stocks 0.0%
Telefonica de Argentina (Class B) ADR (USD) 1,460 $ 51
--------------------------------------------------------------------------------
Total Argentina (Cost $39) 51
------
-----------------------------
AUSTRALIA 1.6%
-----------------------------
Common Stocks 1.2%
Brambles Industries 5,000 141
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Broken Hill Proprietary 8,062 87
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Commonwealth Bank of Australia 7,912 120
--------------------------------------------------------------------------------
Lend Lease 4,856 53
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News Corporation 27,428 348
--------------------------------------------------------------------------------
Publishing & Broadcasting 17,400 135
--------------------------------------------------------------------------------
TABCORP Holdings 9,500 51
--------------------------------------------------------------------------------
Telstra 31,375 135
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Telstra, Installment Receipts 6,000 15
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Westpac Banking 20,511 131
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1,216
------
Preferred Stocks 0.4%
News Corporation 38,173 410
--------------------------------------------------------------------------------
410
------
Total Australia (Cost $1,479) 1,626
------
-----------------------------
BELGIUM 0.3%
-----------------------------
Common Stocks 0.3%
Dexia (EUR) 909 118
--------------------------------------------------------------------------------
Fortis B (EUR) 5,494 139
--------------------------------------------------------------------------------
Societe Europeenne des Satellites (Class A) (EUR) * 221 33
--------------------------------------------------------------------------------
UCB (EUR) 570 19
--------------------------------------------------------------------------------
Total Belgium (Cost $307) 309
------
-----------------------------
BRAZIL 1.1%
-----------------------------
Common Stocks 0.7%
Embratel Participacoes ADR (USD) 2,000 45
--------------------------------------------------------------------------------
Pao de Acucar GDR (USD) 538 15
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T. ROWE PRICE GLOBAL STOCK FUND
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Shares Value
--------------------------------------------------------------------------------
In thousands
Telebras ADR (USD) 5,290 $ 625
--------------------------------------------------------------------------------
Unibanco GDR (USD) 2,000 50
--------------------------------------------------------------------------------
735
---------
Preferred Stocks 0.4%
Banco Itau 310,000 23
--------------------------------------------------------------------------------
Petrol Brasileiros 1,135,720 271
--------------------------------------------------------------------------------
Telesp-Telecomunicacoes de Sao Paulo 2,275,208 57
--------------------------------------------------------------------------------
Telesp Cellular Participacoes 1,805,135 32
--------------------------------------------------------------------------------
383
---------
Total Brazil (Cost $1,017) 1,118
---------
-----------------------------
CANADA 1.5%
-----------------------------
Common Stocks 1.5%
Alcan Aluminum 2,300 75
--------------------------------------------------------------------------------
Celestica (USD) * 5,927 324
--------------------------------------------------------------------------------
Nortel Networks (USD) 4,900 555
--------------------------------------------------------------------------------
Nortel Networks 1,620 183
--------------------------------------------------------------------------------
PMC-Sierra (USD) * 1,800 345
--------------------------------------------------------------------------------
Royal Bank of Canada 790 37
--------------------------------------------------------------------------------
Total Canada (Cost $1,331) 1,519
---------
-----------------------------
DENMARK 0.1%
-----------------------------
Common Stocks 0.1%
Tele Danmark A/S 1,170 86
--------------------------------------------------------------------------------
Total Denmark (Cost $76) 86
---------
-----------------------------
FINLAND 1.6%
-----------------------------
Common Stocks 1.6%
Nokia (EUR) 28,000 1,606
--------------------------------------------------------------------------------
Total Finland (Cost $556) 1,606
---------
-----------------------------
FRANCE 6.1%
-----------------------------
Common Stocks 6.1%
Alcatel Alsthom (EUR) 1,855 430
--------------------------------------------------------------------------------
Altran Technologies (EUR) 380 78
--------------------------------------------------------------------------------
Aventis (EUR) 1,125 61
--------------------------------------------------------------------------------
15
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T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
In thousands
AXA (EUR) 2,373 $ 353
--------------------------------------------------------------------------------
Banque National de Paris (EUR) 4,400 356
--------------------------------------------------------------------------------
Canal Plus (EUR) 1,010 195
--------------------------------------------------------------------------------
Cap Gemini (EUR) 930 183
--------------------------------------------------------------------------------
Carrefour (EUR) 744 48
--------------------------------------------------------------------------------
Cie de St. Gobain (EUR) 1,152 157
--------------------------------------------------------------------------------
Danone (EUR) 170 37
--------------------------------------------------------------------------------
Hermes (EUR) 610 87
--------------------------------------------------------------------------------
L'Oreal (EUR) 74 51
--------------------------------------------------------------------------------
Lafarge (EUR) 357 30
--------------------------------------------------------------------------------
Legrand (EUR) 970 181
--------------------------------------------------------------------------------
LVMH (EUR) 484 203
--------------------------------------------------------------------------------
Rhoen Klinikum (EUR) 6,365 350
--------------------------------------------------------------------------------
Sanofi Synthelabo (EUR) 7,560 282
--------------------------------------------------------------------------------
Schneider Electric (EUR) 845 55
--------------------------------------------------------------------------------
Societe Generale (EUR) 383 79
--------------------------------------------------------------------------------
Sodexho Alliance (EUR) 375 56
--------------------------------------------------------------------------------
STMicroelectronics (EUR) 2,150 409
--------------------------------------------------------------------------------
Television Francaise (EUR) 1,353 926
--------------------------------------------------------------------------------
TotalFina (Class B) (EUR) 5,922 899
--------------------------------------------------------------------------------
Vivendi (EUR) 7,768 768
--------------------------------------------------------------------------------
Total France (Cost $4,746) 6,274
------
-----------------------------
GERMANY 2.3%
-----------------------------
Common Stocks 2.2%
Allianz (EUR) 780 300
--------------------------------------------------------------------------------
Bayer (EUR) 1,482 62
--------------------------------------------------------------------------------
Bayerische Vereinsbank (EUR) 4,757 295
--------------------------------------------------------------------------------
Deutsche Bank (EUR) * 4,120 277
--------------------------------------------------------------------------------
Deutsche Telekom (EUR) 4,493 292
--------------------------------------------------------------------------------
Gehe (EUR) 2,210 69
--------------------------------------------------------------------------------
Infineon Technologies (EUR) * 4,012 276
--------------------------------------------------------------------------------
Rhoen Klinikum (EUR) 841 31
--------------------------------------------------------------------------------
SAP (EUR) 960 449
--------------------------------------------------------------------------------
Siemens (EUR) 563 83
--------------------------------------------------------------------------------
Veba (EUR) 3,240 163
--------------------------------------------------------------------------------
2,297
------
16
<PAGE>
T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
In thousands
Preferred Stocks 0.1%
SAP (EUR) 70 $ 41
--------------------------------------------------------------------------------
41
------
Total Germany (Cost $2,168) 2,338
------
-----------------------------
HONG KONG 1.6%
-----------------------------
Common Stocks 1.6%
Cable & Wireless Hong Kong Telecom 44,400 105
--------------------------------------------------------------------------------
Cheung Kong Holdings 24,000 287
--------------------------------------------------------------------------------
China Telecom (Hong Kong) 57,000 408
--------------------------------------------------------------------------------
Dao Heng Bank Group 25,000 115
--------------------------------------------------------------------------------
Henderson Land Development 22,000 96
--------------------------------------------------------------------------------
Hutchison Whampoa 29,000 421
--------------------------------------------------------------------------------
Pacific Century CyberWorks 89,000 166
--------------------------------------------------------------------------------
Sun Hung Kai Properties 6,000 47
--------------------------------------------------------------------------------
Total Hong Kong (Cost $1,011) 1,645
------
-----------------------------
INDIA 0.5%
-----------------------------
Common Stocks 0.5%
Global Tele-Systems 4,000 109
--------------------------------------------------------------------------------
Hindustan Lever 3,000 165
--------------------------------------------------------------------------------
ICICI Limited ADR (USD) 4,952 126
--------------------------------------------------------------------------------
ICICI Limited 25,000 77
--------------------------------------------------------------------------------
Mahanagar Telephone 18,000 93
--------------------------------------------------------------------------------
Total India (Cost $548) 570
------
-----------------------------
IRELAND 0.1%
-----------------------------
Common Stocks 0.1%
SmartForce ADR (USD) * 2,084 100
--------------------------------------------------------------------------------
Total Ireland (Cost $59) 100
------
-----------------------------
ITALY 2.6%
-----------------------------
Common Stocks 2.6%
Alleanza Assicurazioni (EUR) 18,000 186
--------------------------------------------------------------------------------
Banca Intesa (EUR) 24,618 91
--------------------------------------------------------------------------------
17
<PAGE>
T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
In thousands
Banca Popolare di Brescia (EUR) 3,000 $ 273
--------------------------------------------------------------------------------
ENI (EUR) 40,609 202
--------------------------------------------------------------------------------
Gucci Group (USD) 366 32
--------------------------------------------------------------------------------
Mediaset (EUR) 11,000 179
--------------------------------------------------------------------------------
Mediolanum (EUR) 14,230 236
--------------------------------------------------------------------------------
San Paolo IMI (EUR) 7,315 102
--------------------------------------------------------------------------------
Tecnost (EUR) 18,600 65
--------------------------------------------------------------------------------
Telecom Italia (EUR) 32,440 454
--------------------------------------------------------------------------------
Telecom Italia Mobile (EUR) 68,000 649
--------------------------------------------------------------------------------
Unicredito (EUR) 50,825 206
--------------------------------------------------------------------------------
Total Italy (Cost $2,035) 2,675
------
-----------------------------
JAPAN 10.7%
-----------------------------
Common Stocks 10.7%
Bridgestone 3,000 65
--------------------------------------------------------------------------------
Canon 14,000 640
--------------------------------------------------------------------------------
DDI 9 103
--------------------------------------------------------------------------------
East Japan Railway 10 59
--------------------------------------------------------------------------------
Fanuc 2,000 210
--------------------------------------------------------------------------------
Fuji Bank 45,000 375
--------------------------------------------------------------------------------
Fuji Television Network 20 333
--------------------------------------------------------------------------------
Fujitsu 9,000 255
--------------------------------------------------------------------------------
Hitachi 6,000 72
--------------------------------------------------------------------------------
Ito-Yokado 2,000 146
--------------------------------------------------------------------------------
Kao 3,000 91
--------------------------------------------------------------------------------
Kokuyo 4,000 57
--------------------------------------------------------------------------------
Komori 2,000 27
--------------------------------------------------------------------------------
Kyocera 4,000 669
--------------------------------------------------------------------------------
Makita 8,000 70
--------------------------------------------------------------------------------
Marui 9,000 169
--------------------------------------------------------------------------------
Matsushita Electric Industrial 20,000 530
--------------------------------------------------------------------------------
Mitsui Fudosan 26,000 264
--------------------------------------------------------------------------------
Murata Manufacturing 4,000 778
--------------------------------------------------------------------------------
NEC 24,000 653
--------------------------------------------------------------------------------
Nippon Telegraph & Telephone 56 695
--------------------------------------------------------------------------------
Nomura Securities 18,000 453
--------------------------------------------------------------------------------
NTT DoCoMo * 21 702
--------------------------------------------------------------------------------
Sankyo 6,000 132
--------------------------------------------------------------------------------
18
<PAGE>
T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
In thousands
Seven-Eleven Japan 3,000 $ 369
--------------------------------------------------------------------------------
Shin-Etsu Chemical 4,000 212
--------------------------------------------------------------------------------
Shiseido 8,000 101
--------------------------------------------------------------------------------
Softbank (New shares) * 600 148
--------------------------------------------------------------------------------
Softbank 300 74
--------------------------------------------------------------------------------
Sony (New shares) * 3,600 417
--------------------------------------------------------------------------------
Sony 4,100 471
--------------------------------------------------------------------------------
Sumitomo 13,000 146
--------------------------------------------------------------------------------
Sumitomo Bank 24,000 300
--------------------------------------------------------------------------------
Sumitomo Electric Industries 8,000 107
--------------------------------------------------------------------------------
TDK 1,000 134
--------------------------------------------------------------------------------
Toshiba 56,000 543
--------------------------------------------------------------------------------
Yamanouchi Pharmaceutical 7,000 370
--------------------------------------------------------------------------------
Total Japan (Cost $7,440) 10,940
-------
-----------------------------
MEXICO 1.1%
-----------------------------
Common Stocks 1.1%
Femsa UBD (Represents 1 Class B and 4 Series D shares) 31,460 125
--------------------------------------------------------------------------------
Grupo Iusacell ADR (USD) * 3,400 54
--------------------------------------------------------------------------------
Grupo Televisa GDR (USD) * 7,023 446
--------------------------------------------------------------------------------
Telefonos de Mexico (Class L) ADR (USD) 9,360 550
--------------------------------------------------------------------------------
Total Mexico (Cost $889) 1,175
-------
-----------------------------
NETHERLANDS 3.4%
-----------------------------
Common Stocks 3.4%
ABN Amro (EUR) 2,396 49
--------------------------------------------------------------------------------
Akzo Nobel (EUR) 500 21
--------------------------------------------------------------------------------
ASM Lithography (EUR) 10,800 422
--------------------------------------------------------------------------------
CSM (EUR) 4,426 76
--------------------------------------------------------------------------------
Equant (EUR) * 1,803 140
--------------------------------------------------------------------------------
Fortis NI (EUR) 7,700 194
--------------------------------------------------------------------------------
ING Groep (EUR) 12,230 667
--------------------------------------------------------------------------------
KPN (EUR) 1,488 150
--------------------------------------------------------------------------------
Philips Electronics (EUR) 15,544 693
--------------------------------------------------------------------------------
Royal Dutch Petroleum (EUR) 5,620 324
--------------------------------------------------------------------------------
TNT Post Groep (EUR) 588 13
--------------------------------------------------------------------------------
United Pan-Europe Communications (EUR) 3,710 135
--------------------------------------------------------------------------------
VNU (EUR) 9,660 517
--------------------------------------------------------------------------------
19
<PAGE>
T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
In thousands
Wolters Kluwer (EUR) * 6,276 $ 148
--------------------------------------------------------------------------------
Total Netherlands (Cost $2,950) 3,549
--------
-----------------------------
NEW ZEALAND 0.1%
-----------------------------
Common Stocks 0.1%
Telecom Corporation of New Zealand 23,800 101
--------------------------------------------------------------------------------
Total New Zealand (Cost $105) 101
--------
-----------------------------
NORWAY 0.1%
-----------------------------
Common Stocks 0.1%
Orkla (Class A) 5,812 90
--------------------------------------------------------------------------------
Total Norway (Cost $87) 90
--------
-----------------------------
PORTUGAL 0.1%
-----------------------------
Common Stocks 0.1%
Jeronimo Martins (EUR) 3,370 60
--------------------------------------------------------------------------------
Total Portugal (Cost $57) 60
--------
-----------------------------
SINGAPORE 0.8%
-----------------------------
Common Stocks 0.8%
Flextronics International * 8,200 576
--------------------------------------------------------------------------------
Pacific Century Regional Developments 1,000 8
--------------------------------------------------------------------------------
United Overseas Bank 40,232 281
--------------------------------------------------------------------------------
Total Singapore (Cost $694) 865
--------
-----------------------------
SOUTH KOREA 0.8%
-----------------------------
Common Stocks 0.8%
Korea Telecom ADR (USD) 4,100 141
--------------------------------------------------------------------------------
Pohang Iron & Steel ADR (USD) 1,284 27
--------------------------------------------------------------------------------
Samsung Electronics 2,211 598
--------------------------------------------------------------------------------
South Korea Telecom 200 53
--------------------------------------------------------------------------------
Total South Korea (Cost $649) 819
--------
-----------------------------
SPAIN 1.5%
-----------------------------
Common Stocks 1.5%
Banco Bilbao Vizcaya (EUR) 13,053 178
--------------------------------------------------------------------------------
20
<PAGE>
T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
In thousands
Banco Santander Central Hispano (EUR) 37,770 $ 394
--------------------------------------------------------------------------------
Empresa Nacional de Electricidad (EUR) 12,786 277
--------------------------------------------------------------------------------
Gas Natural (EUR) 370 6
--------------------------------------------------------------------------------
Repsol (EUR) 7,131 146
--------------------------------------------------------------------------------
Telefonica (EUR) 23,583 525
--------------------------------------------------------------------------------
Total Spain (Cost $1,227) 1,526
--------
-----------------------------
SWEDEN 1.8%
-----------------------------
Common Stocks 1.8%
ABB 978 109
--------------------------------------------------------------------------------
Atlas Copco (Class B) 1,310 30
--------------------------------------------------------------------------------
Electrolux (Class B) 5,350 90
--------------------------------------------------------------------------------
Hennes & Mauritz (Class B) 8,420 224
--------------------------------------------------------------------------------
LM Ericsson 7,510 668
--------------------------------------------------------------------------------
Nordic Baltic Holding 35,103 221
--------------------------------------------------------------------------------
Nordic Baltic Holding (DKK)* 3,557 22
--------------------------------------------------------------------------------
Sandvik (Class B) 1,535 37
--------------------------------------------------------------------------------
Securitas (Class B) 18,357 475
--------------------------------------------------------------------------------
Total Sweden (Cost $1,261) 1,876
--------
-----------------------------
SWITZERLAND 1.9%
-----------------------------
Common Stocks 1.9%
ABB 1,898 213
--------------------------------------------------------------------------------
Adecco 746 612
--------------------------------------------------------------------------------
Credit Suisse Group 1,000 181
--------------------------------------------------------------------------------
Nestle 250 441
--------------------------------------------------------------------------------
Roche Holdings 14 146
--------------------------------------------------------------------------------
Swisscom 182 64
--------------------------------------------------------------------------------
UBS 1,156 283
--------------------------------------------------------------------------------
Total Switzerland (Cost $1,520) 1,940
--------
-----------------------------
TAIWAN 0.7%
-----------------------------
Common Stocks 0.7%
Hon Hai Precision * 22,000 212
--------------------------------------------------------------------------------
Taiwan Semiconductor Manufacturing 68,070 438
--------------------------------------------------------------------------------
United Microelectronics 15,000 51
--------------------------------------------------------------------------------
Total Taiwan (Cost $549) 701
--------
21
<PAGE>
T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
In thousands
-----------------------------
UNITED KINGDOM 9.2%
-----------------------------
Common Stocks 9.2%
Abbey National 6,000 $ 68
--------------------------------------------------------------------------------
AstraZeneca Group 8,196 343
--------------------------------------------------------------------------------
Baltimore Technologies 1,000 101
--------------------------------------------------------------------------------
BG Group 5,940 36
--------------------------------------------------------------------------------
BP Amoco 23,000 199
--------------------------------------------------------------------------------
Cable & Wireless 37,800 627
--------------------------------------------------------------------------------
Cadbury Schweppes 22,100 151
--------------------------------------------------------------------------------
Celltech Group 6,000 99
--------------------------------------------------------------------------------
Centrica 15,600 56
--------------------------------------------------------------------------------
Compass Group 34,000 483
--------------------------------------------------------------------------------
David S. Smith 9,000 19
--------------------------------------------------------------------------------
Diageo 24,426 198
--------------------------------------------------------------------------------
Electrocomponents 7,000 70
--------------------------------------------------------------------------------
GKN 2,000 28
--------------------------------------------------------------------------------
Glaxo Wellcome 31,700 968
--------------------------------------------------------------------------------
Hays 3,800 26
--------------------------------------------------------------------------------
Hilton Group 9,000 38
--------------------------------------------------------------------------------
HSBC Holdings (HKD) 5,600 63
--------------------------------------------------------------------------------
Kingfisher 20,800 170
--------------------------------------------------------------------------------
Marconi 16,400 204
--------------------------------------------------------------------------------
Reed International 62,000 430
--------------------------------------------------------------------------------
Rio Tinto 13,000 201
--------------------------------------------------------------------------------
Royal Bank of Scotland Group 43,536 675
--------------------------------------------------------------------------------
Safeway 11,000 37
--------------------------------------------------------------------------------
Shell Transport & Trading 92,000 745
--------------------------------------------------------------------------------
SmithKline Beecham 39,300 536
--------------------------------------------------------------------------------
Standard Chartered 13,000 176
--------------------------------------------------------------------------------
Tesco 26,500 90
--------------------------------------------------------------------------------
Tomkins 48,372 149
--------------------------------------------------------------------------------
Unilever 20,178 121
--------------------------------------------------------------------------------
United News & Media 7,700 100
--------------------------------------------------------------------------------
Vodafone Airtouch 341,523 1,566
--------------------------------------------------------------------------------
Vodafone Airtouch ADR (USD) 4,750 223
--------------------------------------------------------------------------------
WPP Group 28,000 451
--------------------------------------------------------------------------------
Total United Kingdom (Cost $8,842) 9,447
---------
22
<PAGE>
T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
In thousands
--------------------------
UNITED STATES 42.3%
--------------------------
Common Stocks 42.3%
ACE Limited 16,500 $ 395
--------------------------------------------------------------------------------
Altera * 5,800 593
--------------------------------------------------------------------------------
America Online * 8,200 490
--------------------------------------------------------------------------------
American Home Products 7,700 433
--------------------------------------------------------------------------------
Applied Materials * 5,700 580
--------------------------------------------------------------------------------
Ariba * 3,500 259
--------------------------------------------------------------------------------
Associates First Capital (Class A) 7,800 173
--------------------------------------------------------------------------------
AT&T 7,000 327
--------------------------------------------------------------------------------
AT&T Liberty Media Group * 11,000 549
--------------------------------------------------------------------------------
Atmel * 3,500 171
--------------------------------------------------------------------------------
Automatic Data Processing 8,700 468
--------------------------------------------------------------------------------
Baker Hughes 17,500 557
--------------------------------------------------------------------------------
Bank of New York 13,300 546
--------------------------------------------------------------------------------
Baxter International 9,000 586
--------------------------------------------------------------------------------
Black & Decker 9,000 379
--------------------------------------------------------------------------------
BMC Software * 10,400 487
--------------------------------------------------------------------------------
Bristol-Myers Squibb 6,900 362
--------------------------------------------------------------------------------
Cabot 16,000 432
--------------------------------------------------------------------------------
Capital One Financial 6,100 267
--------------------------------------------------------------------------------
CBS * 7,200 423
--------------------------------------------------------------------------------
Chase Manhattan 2,900 209
--------------------------------------------------------------------------------
Circuit City Stores 7,200 423
--------------------------------------------------------------------------------
Cisco Systems * 20,400 1,415
--------------------------------------------------------------------------------
Citigroup 16,298 969
--------------------------------------------------------------------------------
Clear Channel Communications * 5,000 360
--------------------------------------------------------------------------------
Coca-Cola 3,400 160
--------------------------------------------------------------------------------
Colgate-Palmolive 4,600 263
--------------------------------------------------------------------------------
Comcast (Class A Special) 6,000 241
--------------------------------------------------------------------------------
Computer Associates 8,000 446
--------------------------------------------------------------------------------
Concord EFS * 17,200 384
--------------------------------------------------------------------------------
Corning 4,300 849
--------------------------------------------------------------------------------
Costco Wholesale * 8,700 471
--------------------------------------------------------------------------------
CVS 11,984 521
--------------------------------------------------------------------------------
Dell Computer * 16,000 801
--------------------------------------------------------------------------------
Disney 5,000 217
--------------------------------------------------------------------------------
23
<PAGE>
T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
In thousands
Edwards Lifesciences * 1,580 $ 24
--------------------------------------------------------------------------------
Electronic Arts * 3,800 230
--------------------------------------------------------------------------------
Eli Lilly 6,100 472
--------------------------------------------------------------------------------
Exxon Mobil 7,104 552
--------------------------------------------------------------------------------
Fannie Mae 7,300 440
--------------------------------------------------------------------------------
First Data 11,000 536
--------------------------------------------------------------------------------
Firstar 17,600 438
--------------------------------------------------------------------------------
Freddie Mac 18,700 859
--------------------------------------------------------------------------------
GE 7,100 1,116
--------------------------------------------------------------------------------
Gillette 3,400 126
--------------------------------------------------------------------------------
GTE 5,300 359
--------------------------------------------------------------------------------
Hartford Financial Services Group 6,000 313
--------------------------------------------------------------------------------
Hewlett-Packard 3,100 418
--------------------------------------------------------------------------------
Home Depot 8,650 485
--------------------------------------------------------------------------------
IMS Health 4,800 82
--------------------------------------------------------------------------------
Infinity Broadcasting (Class A) * 5,400 183
--------------------------------------------------------------------------------
Intel 6,200 786
--------------------------------------------------------------------------------
JDS Uniphase * 4,400 456
--------------------------------------------------------------------------------
Kansas City Southern Industries 2,300 165
--------------------------------------------------------------------------------
Kimberly-Clark 2,000 116
--------------------------------------------------------------------------------
Kroger * 14,100 262
--------------------------------------------------------------------------------
Lexmark International Group (Class A) * 2,800 330
--------------------------------------------------------------------------------
Lowes 5,000 247
--------------------------------------------------------------------------------
Lucent Technologies 3,925 244
--------------------------------------------------------------------------------
Maxim Integrated Products * 4,800 311
--------------------------------------------------------------------------------
MCI WorldCom * 14,350 652
--------------------------------------------------------------------------------
Mellon Financial 8,400 270
--------------------------------------------------------------------------------
Merck 4,900 341
--------------------------------------------------------------------------------
Microsoft * 15,300 1,068
--------------------------------------------------------------------------------
Millipore 5,800 416
--------------------------------------------------------------------------------
Morgan Stanley Dean Witter 5,300 407
--------------------------------------------------------------------------------
Nextel Communications * 4,200 460
--------------------------------------------------------------------------------
NEXTLINK Communications * 3,100 261
--------------------------------------------------------------------------------
Omnicom 4,300 392
--------------------------------------------------------------------------------
Oracle * 10,300 823
--------------------------------------------------------------------------------
PepsiCo 13,000 477
--------------------------------------------------------------------------------
Peregrine Systems * 3,200 77
--------------------------------------------------------------------------------
24
<PAGE>
T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
Shares Value
--------------------------------------------------------------------------------
In thousands
Pfizer 10,300 $ 434
--------------------------------------------------------------------------------
Pharmacia 12,495 624
--------------------------------------------------------------------------------
Philip Morris 11,500 252
--------------------------------------------------------------------------------
QUALCOMM * 2,500 271
--------------------------------------------------------------------------------
Safeway * 14,900 657
--------------------------------------------------------------------------------
Schering-Plough 6,300 254
--------------------------------------------------------------------------------
Siebel Systems * 4,000 492
--------------------------------------------------------------------------------
Solectron * 10,500 492
--------------------------------------------------------------------------------
Sprint 3,000 184
--------------------------------------------------------------------------------
Sprint PCS * 3,000 165
--------------------------------------------------------------------------------
State Street 3,900 378
--------------------------------------------------------------------------------
Sun Microsystems * 3,000 276
--------------------------------------------------------------------------------
Target 6,900 459
--------------------------------------------------------------------------------
Texas Instruments 4,100 668
--------------------------------------------------------------------------------
Time Warner 2,900 261
--------------------------------------------------------------------------------
Tyco International 20,964 963
--------------------------------------------------------------------------------
United Technologies 5,500 342
--------------------------------------------------------------------------------
Unitedhealth Group * 6,000 400
--------------------------------------------------------------------------------
USX-Marathon 16,800 392
--------------------------------------------------------------------------------
VERITAS Software * 4,300 461
--------------------------------------------------------------------------------
Wal-Mart 10,900 604
--------------------------------------------------------------------------------
Warner-Lambert 7,000 797
--------------------------------------------------------------------------------
Waters * 7,200 682
--------------------------------------------------------------------------------
Wellpoint Health Networks * 6,800 501
--------------------------------------------------------------------------------
Wells Fargo 6,000 246
--------------------------------------------------------------------------------
Western Wireless 9,500 471
--------------------------------------------------------------------------------
Young & Rubicam 5,400 301
--------------------------------------------------------------------------------
Total United States (Cost $32,103) 43,427
---------
--------------------------------
SHORT-TERM INVESTMENTS 5.8%
--------------------------------
Money Market Funds 5.8%
Reserve Investment Fund, 6.18% # 5,903,183 5,903
--------------------------------------------------------------------------------
Total Short-Term Investments (Cost $5,903) 5,903
---------
25
<PAGE>
T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
In thousands
<TABLE>
<S> <C> <C> <C> <C>
----------------------------------------
Total Investments in Securities
----------------------------------------
99.7% of Net Assets (Cost $79,648) $ 102,336
----------------------------------------
Futures Contracts
----------------------------------------
In thousands
Contract Unrealized
Expiration Value Gain (Loss)
---------- -------- -----------
Long, 3 FTSE 100 Index contracts, 6/00 $ 181 $ (11)
$15,000 of cash pledged as initial margin
Long, 1 DAX Index contract, 6/00 173 (13)
$10,000 of cash pledged as initial margin
Long, 4 NIKKEI 225 Index contracts, 6/00 36,221 (29)
$25,000 of cash pledged as initial margin
Net payments (receipts) of variation
margin to date 68
------
Variation margin receivable 15
(payable) on open futures contracts
Other Assets Less Liabilities 243
---------
NET ASSETS $ 102,594
=========
Net Assets Consist of:
Accumulated net investment income - net of distributions $ (21)
Accumulated net realized gain/loss - net of distributions 2,757
Net unrealized gain (loss) 22,632
Paid-in-capital applicable to 5,499,988 shares of $0.01 par
value capital stock outstanding; 2,000,000,000 shares
of the Corporation authorized 77,226
---------
NET ASSETS $ 102,594
=========
NET ASSET VALUE PER SHARE $ 18.65
=========
</TABLE>
* Non-income producing
# Seven-day yield
ADR American depository receipt
DKK Danish krone
EUR Euro
GDR Global depository receipt
HKD Hong Kong dollar
USD U.S. dollar
The accompanying notes are an integral part of these financial statements.
26
<PAGE>
T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
Unaudited
-----------------------
STATEMENT OF OPERATIONS
--------------------------------------------------------------------------------
In thousands
6 Months
Ended
4/30/00
------------------------------------------
Investment Income (Loss)
------------------------------------------
Income
Dividend (net of foreign taxes of $29) $ 358
Interest 203
Securities lending 4
--------
Total income 565
--------
Expenses
Investment management 305
Shareholder servicing 128
Custody and accounting 76
Registration 17
Prospectus and shareholder reports 10
Legal and audit 9
Directors 3
Miscellaneous 2
--------
Total expenses 550
--------
Net investment income (loss) 15
--------
------------------------------------------
Realized and Unrealized Gain (Loss)
------------------------------------------
Net realized gain (loss)
Securities 2,899
Futures 40
Foreign currency transactions (67)
--------
Net realized gain (loss) 2,872
--------
Change in net unrealized gain or loss
Securities 8,750
Futures (53)
Other assets and liabilities
denominated in foreign currencies (3)
--------
Change in net unrealized gain or loss 8,694
--------
Net realized and unrealized gain (loss) 11,566
--------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 11,581
========
The accompanying notes are an integral part of these financial statements.
27
<PAGE>
T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
Unaudited
-----------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
In thousands
6 Months Year
Ended Ended
4/30/00 10/31/99
Increase (Decrease) in Net Assets
Operations
Net investment income (loss) $ 15 $ 233
Net realized gain (loss) 2,872 2,327
Change in net unrealized gain or loss 8,694 9,348
---------------------
Increase (decrease) in net assets from operations 11,581 11,908
---------------------
Distributions to shareholders
Net investment income (282) (317)
Net realized gain (2,301) (1,428)
---------------------
Decrease in net assets from distributions (2,583) (1,745)
---------------------
Capital share transactions *
Shares sold 42,641 36,916
Distributions reinvested 2,529 1,702
Shares redeemed (25,411) (19,060)
---------------------
Increase (decrease) in net assets from capital
share transactions 19,759 19,558
---------------------
--------------------------------------------------
Net Assets
--------------------------------------------------
Increase (decrease) during period 28,757 29,721
Beginning of period 73,837 44,116
---------------------
End of period $102,594 $ 73,837
=====================
*Share information
Shares sold 2,322 2,373
Distributions reinvested 146 120
Shares redeemed (1,372) (1,233)
---------------------
Increase (decrease) in shares outstanding 1,096 1,260
28
<PAGE>
T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
Unaudited April 30, 2000
-----------------------------
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price International Funds, Inc. (the corporation) is registered
under the Investment Company Act of 1940. The Global Stock Fund (the
fund), a diversified, open-end management investment company, is one of
the portfolios established by the corporation and commenced operations on
December 29, 1995. The fund seeks long-term growth of capital by investing
primarily in the common stocks of established companies throughout the
world, including the United States.
The accompanying financial statements are prepared in accordance with
generally accepted accounting principles for the investment company
industry; these principles may require the use of estimates by fund
management.
Valuation Equity securities are valued at the last quoted sales price at
the time the valuations are made. A security which is listed or traded on
more than one exchange is valued at the quotation on the exchange
determined to be the primary market for such security.
Investments in mutual funds are valued at the closing net asset value per
share of the mutual fund on the day of valuation. Financial futures
contracts are valued at closing settlement prices.
For purposes of determining the fund's net asset value per share, the U.S.
dollar value of all assets and liabilities initially expressed in foreign
currencies is determined by using the mean of the bid and offer prices of
such currencies against U.S. dollars quoted by a major bank.
Assets and liabilities for which the above valuation procedures are
inappropriate or are deemed not to reflect fair value are stated at fair
value as determined in good faith by or under the supervision of the
officers of the fund, as authorized by the Board of Directors.
Currency Translation Assets and liabilities are translated into U.S.
dollars at the prevailing exchange rate at the end of the reporting
period. Purchases and sales of securities and income and expenses are
translated into U.S. dollars at the prevailing exchange rate on the dates
of such transactions. The effect of changes in foreign exchange rates on
realized and unrealized security gains and losses is reflected as a
component of such gains and losses.
Other Income and expenses are recorded on the accrual basis. Investment
transactions are accounted for on the trade date. Realized gains and
losses are
29
<PAGE>
T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
reported on the identified cost basis. Dividend income and distributions
to shareholders are recorded by the fund on the ex-dividend date. Income
and capital gain distributions are determined in accordance with federal
income tax regulations and may differ from those determined in accordance
with generally accepted accounting principles. Credits earned on daily
uninvested cash balances at the custodian are used to reduce the fund's
custody charges. Payments ("variation margin") made or received by the
fund to settle the daily fluctuations in the value of futures contracts
are recorded as unrealized gains or losses until the contracts are closed.
Unrealized gains and losses on futures contracts are included in change in
net unrealized gain or loss in the accompanying financial statements.
NOTE 2 - INVESTMENT TRANSACTIONS
Consistent with its investment objective, the fund engages in the
following practices to manage exposure to certain risks or enhance
performance. The investment objective, policies, program, and risk factors
of the fund are described more fully in the fund's prospectus and
Statement of Additional Information.
Futures Contracts At April 30, 2000, the fund was a party to futures
contracts, which provide for the future sale by one party and purchase by
another of a specified amount of a specific financial instrument at an
agreed upon price, date, time, and place. Risks arise from possible
illiquidity of the futures market and from movements in security and
currency values.
Securities Lending The fund lends its securities to approved brokers to
earn additional income and receives cash and U.S. government securities as
collateral against the loans. Cash collateral received is invested in a
money market pooled account by the fund's lending agent. Collateral is
maintained over the life of the loan in an amount not less than 100% of
the value of loaned securities. Although risk is mitigated by the
collateral, the fund could experience a delay in recovering its securities
and a possible loss of income or value if the borrower fails to return
them. At April 30, 2000, the value of loaned securities was $3,708,000;
aggregate collateral consisted of $3,829,000 in the securities lending
collateral pool.
Other Purchases and sales of portfolio securities, other than short-term
securities, aggregated $42,486,000 and $26,920,000, respectively, for the
six months ended April 30, 2000.
30
<PAGE>
T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
NOTE 3 - FEDERAL INCOME TAXES
No provision for federal income taxes is required since the fund intends
to continue to qualify as a regulated investment company and distribute
all of its taxable income.
At April 30, 2000, the cost of investments for federal income tax purposes
was substantially the same as for financial reporting and totaled
$79,648,000. Net unrealized gain aggregated $22,688,000 at period-end, of
which $25,311,000 related to appreciated investments and $2,623,000 to
depreciated investments.
NOTE 4 - FOREIGN TAXES
The fund is subject to foreign income taxes imposed by certain countries
in which it invests. Foreign income taxes are accrued by the fund and
withheld from dividend and interest income.
NOTE 5 - RELATED PARTY TRANSACTIONS
The fund is managed by Rowe Price-Fleming International, Inc. (the
manager), which is owned by T. Rowe Price Associates, Inc. (Price
Associates) and Robert Fleming Holdings Limited (Fleming). Price
Associates has entered into an agreement with Fleming to purchase
Fleming's interest in the manager.
The investment management agreement between the fund and the manager
provides for an annual investment management fee, of which $53,000 was
payable at April 30, 2000. The fee is computed daily and paid monthly, and
consists of an individual fund fee equal to 0.35% of average daily net
assets and a group fee. The group fee is based on the combined assets of
certain mutual funds sponsored by the manager or Price Associates (the
group). The group fee rate ranges from 0.48% for the first $1 billion of
assets to 0.295% for assets in excess of $120 billion. At April 30, 2000,
and for the six months then ended, the effective annual group fee rate
0.32%. The fund pays a pro-rata share of the group fee based on the ratio
of its net assets to those of the group.
Under the terms of the investment management agreement, the manager is
required to bear any expenses through October 31, 2001, which would cause
the fund's ratio of total expenses to average net assets to exceed 1.20%.
Thereafter, through October 31, 2003, the fund is required to reimburse
the manager for these expenses, provided that average net assets have
grown or
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T. ROWE PRICE GLOBAL STOCK FUND
--------------------------------------------------------------------------------
expenses have declined sufficiently to allow reimbursement without causing
the fund's ratio of total expenses to average net assets to exceed 1.20%.
Pursuant to this agreement, $1,000 of management fees were not accrued by
the fund for the six months ended April 30, 2000. Additionally, $305,000
of unaccrued management fees related to a previous expense limitation are
subject to reimbursement through October 31, 2001.
In addition, the fund has entered into agreements with Price Associates
and two wholly owned subsidiaries of Price Associates, pursuant to which
the fund receives certain other services. Price Associates computes the
daily share price and maintains the financial records of the fund. T. Rowe
Price Services, Inc. is the fund's transfer and dividend disbursing agent
and provides shareholder and administrative services to the fund. T. Rowe
Price Retirement Plan Services, Inc. provides subaccounting and
recordkeeping services for certain retirement accounts invested in the
fund. The fund incurred expenses pursuant to these related party
agreements totaling approximately $155,000 for the six months ended April
30, 2000, of which $28,000 was payable at period-end.
The fund may invest in the Reserve Investment Fund and Government Reserve
Investment Fund (collectively, the Reserve Funds), open-end management
investment companies managed by T. Rowe Price Associates, Inc. The Reserve
Funds are offered as cash management options only to mutual funds and
other accounts managed by T. Rowe Price and its affiliates and are not
available to the public. The Reserve Funds pay no investment management
fees. Distributions from the Reserve Funds to the fund for the six months
ended April 30, 2000 totaled $200,000 and are reflected as interest income
in the accompanying Statement of Operations.
During the six months ended April 30, 2000, the fund, in the ordinary
course of business, placed security purchase and sale orders aggregating
$1,131,000 with certain affiliates of the manager and paid commissions of
$2,000 related thereto.
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T. ROWE PRICE SHAREHOLDER SERVICES
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INVESTMENT SERVICES AND INFORMATION
KNOWLEDGEABLE SERVICE REPRESENTATIVES
By Phone 1-800-225-5132 Available Monday through Friday from 8 a.m. to 10
p.m. ET and weekends from 8:30 a.m. to 5 p.m. ET.
In Person Available in T. Rowe Price Investor Centers.
ACCOUNT SERVICES
Checking Available on most fixed income funds ($500 minimum).
Automatic Investing From your bank account or paycheck.
Automatic Withdrawal Scheduled, automatic redemptions.
Distribution Options Reinvest all, some, or none of your distributions.
Automated 24-Hour Services Including Tele*Access(R)and the T. Rowe Price
Web site on the Internet. Address: www.troweprice.com
BROKERAGE SERVICES*
Individual Investments Stocks, bonds, options, precious metals, and other
securities at a savings over full-service commission rates.**
INVESTMENT INFORMATION
Combined Statement Overview of all your accounts with T. Rowe Price.
Shareholder Reports Fund managers' reviews of their strategies and
results.
T. Rowe Price Report Quarterly investment newsletter discussing markets
and financial strategies.
Performance Update Quarterly review of all T. Rowe Price fund results.
Insights Educational reports on investment strategies and financial
markets.
Investment Guides Asset Mix Worksheet, College Planning Kit, Diversifying
Overseas: A Guide to International Investing, Personal Strategy Planner,
Retirees Financial Guide, and Retirement Planning Kit.
* T. Rowe Price Brokerage is a division of T. Rowe Price Investment
Services, Inc., Member NASD/SIPC.
** Based on a September 1999 survey for representative-assisted stock
trades. Services vary by firm, and commissions may vary depending on
size of order.
33
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For fund and account information or to conduct transactions, 24 hours, 7 days a
week
By touch-tone telephone
Tele*Access 1-800-638-2587
By Account Access on the Internet
www.troweprice.com/access
For assistance with your existing fund account, call:
Shareholder Service Center 1-800-225-5132
To open a brokerage account or obtain information, call:
1-800-638-5660
Internet address:
www.troweprice.com
Plan Account Lines for retirement plan participants:
The appropriate 800 number appears on your retirement account statement.
T. Rowe Price Associates
100 East Pratt Street
Baltimore, Maryland 21202
Walk-In Investor Centers:
For directions, call 1-800-225-5132
or visit our Web site
Baltimore Area
Downtown
101 East Lombard Street
Owings Mills
Three Financial Center
4515 Painters Mill Road
Boston Area
386 Washington Street
Wellesley
Colorado Springs
4410 ArrowsWest Drive
Los Angeles Area
Warner Center
21800 Oxnard Street, Suite 270
Woodland Hills
Tampa
4200 West Cypress Street
10th Floor
Washington, D.C.
900 17th Street N.W.
Farragut Square
This report is authorized for distribution only to shareholders and to others
who have received a copy of the prospectus appropriate to the fund or funds
covered in this report.
Invest With Confidence(R)[LOGO]
T.RowePrice
T. Rowe Price Investment Services, Inc., Distributor. F04-051 4/30/00
